TTK Prestige Ltd. share price target

Despite a challenging start to the financial year (Q1 revenue down 51% YoY), TTK staged an impressive recovery by exiting FY21 with revenue growth of 5% YoY. Supply chain issues faced in H1FY21 largely stabilised in H2FY21. E-commerce was the key segment to drive sales growth for the year (~20% of revenues) but momentum in other channels (MBOs, LFS, Prestige Xclusive) also picked up pace in Q4FY21. Among categories, on the back of new launches, cookware segment outperformed (16% of revenues) with healthy sales growth of 16% YoY in FY21. The cookware division posted its...

Background: TTKPT broadly operates under 3 major segments - Pressure Cooker & Pans, Non-stick Cookware and Kitchen Electric Appliances. TTKPT enjoys high brand recall and they spend ~7.2% of their annual sales for brand building and promotional activity, which enables them to dominate most of the segments in which they operate. TTKPT has a market share of ~60% in the outer-lid pressure cooker, ~15% in inner-lid pressure cooker within the organized market and in...

Q3FY21 consolidated revenue increased 23.6% YoY aided by festive demand along with revival in all channels. Strong growth was visible across all categories. Pressure Cooker segment grew by 29%YoY, Cookware by 34%YoY and Other Kitchen appliances by 19%YoY. Direct rural channel contributed double digit growth despite opened up towards end of the quarter. E-Com sales growth was significant and the revenue mix increased to 16% from 14% in FY20. MFI (Micro Finance) routed sales started to revive post lifting of moratorium in October and reached ~4% of the total sales. TTK has introduced 25 new SKUs including new category of casseroles during...

TTK Prestige reported strong topline growth of 24.4% YoY to | 679.4 crore. The management indicated that it lost ~| 20-30 crore on account of non availability of certain SKUs for which the management is shifting the sourcing from China to domestic vendors. Domestic kitchen and home appliance demand was strong as people were working from home most of the time and also due to accentuated preference for home cooked food. Growth was broad based with cooker (30% of sales), cookware (15% of sales) and appliances (51% of sales) categories registering strong revenue...

TTK Prestige Ltd (TTK) is the flagship company of TTK group, mainly operates in the Kitchen Appliances segment. The company has 5 manufacturing plants and a strong distribution network, including 590...

Background: TTKPT broadly operates under 3 major segments - Pressure Cooker & Pans, Non-stick Cookware and Kitchen Electric Appliances. TTKPT enjoys high brand recall and they spend ~7.2% of their annual sales for brand building and promotional activity, which enables them to dominate most of the segments in which they operate. TTKPT has a market share of ~60% in the outer-lid pressure cooker, ~15% in inner-lid pressure cooker within the organized market and in...

Stock availably of some key SKUs and supply disruptions of certain components (as vendors had immigrant labour issues) were the major challenges that restricted growth in Q2FY21. Among categories, appliances (51% of sales) and cookware (17% of sales) segments performed better with revenue growth of 7% and 8%, respectively. Also, other categories (4% of sales, which includes cleaning segment) grew robustly by 40% YoY. Sales for pressure cookers (28% of sales) were under pressure as the segment reported revenue de-growth of 9% YoY. The management highlighted that...

Post relaxations in lockdown, green shoots were visible with renewed customer interest in kitchen appliances and cleaning segment as majority of people preferred home cooked food. Despite less than two-third of channels being operational, June sales rebounded strongly with sales reaching 90% of pre-Covid sales. The healthy trajectory sustained in July with revenues at 90%+ pre-Covid levels. As anticipated, revenues from e-commerce channel grew at the fastest rate with overall share now rising to 25% (from earlier ~12%). TTK is the market leader on e-commerce platform with margins and...

Background: TTKPT broadly operates under 3 major segments - Pressure Cooker & Pans, Non-stick Cookware and Kitchen Electric Appliances. TTKPT enjoys high brand recall and they spend ~7.2% of their annual sales for brand building and promotional activity, which enables them to dominate most of the segments in which they operate. TTKPT has a market share of ~60% in the outer-lid pressure cooker, ~15% in inner-lid pressure cooker within the organized market and in Induction cook-top space they enjoy a market share of about ~25%. 80% of sales are from products introduced in the last 3 years. TTKPT has network of 65,000...

Post relaxation in lockdown, green shoots were visible with renewed customer interest in kitchen appliances, cookers segment as most people preferred home cooked food. Furthermore, certain PSK stores saw more than pre-Covid level average daily sales (10%+ in June) due to pent up demand. Due to absence of domestic help, a resurgence in demand for cleaning segment (2% of sales) was also visible. Share of e-commerce channels is likely to surge materially in FY21E (12-14% in FY20). Revenue from e-commerce space grew 2x in June YoY. TTK is the market leader on...